IHSG Closed Down 1.61% Ahead of Extended Eid Holiday

Jakarta — Indonesia’s Composite Stock Index (IHSG) closed down 114.92 points or 1.61% to 7,022.29 points at the end of trading on Monday, 16 March 2026.

A total of 569 shares fell, 189 rose, and 200 remained unchanged ahead of the extended Eid holiday this year. Transaction value reached Rp 15.89 trillion, involving 30.31 billion shares across 1.64 million transactions. Market capitalisation eroded to Rp 12.413 trillion.

According to Refinitiv, utilities emerged as the worst-performing sector, declining 3.99%, followed by property down 3.89% and raw materials down 3.79%.

Shares that served as primary drags on the index included Dian Swastatika Sentosa (DSSA) burdening the IHSG by 19.02 index points, followed by Bumi Resources Minerals (BRMS) at 17.18 index points and Amman Mineral Internasional (AMMN) at 13.35 index points. Barito Renewables Energy (BREN) and Bank Central Asia (BBCA) also featured among top laggards.

Trading this week will be exceptionally brief, comprising only two days—Monday and Tuesday—before the extended holiday and collective leave for Eid al-Fitr commences on Wednesday, 18 March 2026, through the following Tuesday.

However, ahead of the extended break, investors face considerable apprehension regarding domestic and global conditions.

Global financial markets will encounter numerous sentiments and significant data releases this week. The Middle Eastern conflict and its impact on energy supplies will remain a primary factor driving global markets. This issue will also play a crucial role in a series of interest rate decisions from major central banks worldwide.

The principal focus this week centres on central bank decisions. At least 11 central banks are holding interest rate decision meetings this week, including the US Federal Reserve and Bank Indonesia.

With the Indonesian market closed amidst extensive global data releases, investors must carefully consider and calculate their actions over these two trading days.

Bank Indonesia will conduct its Monetary Board Meeting (RDG) on Monday, 16 March 2026, and Tuesday, 17 March 2026, this week.

Bank Indonesia is expected to maintain its benchmark interest rate at 4.75% this month to preserve the rupiah’s exchange value amid escalating Middle Eastern tensions and surging oil prices. Bank Indonesia has maintained its benchmark rate since September 2025.

The primary focus this week centres on the Federal Reserve’s interest rate decision, scheduled for Tuesday-Wednesday US time and to be announced early Thursday Indonesian time, 19 March 2026.

Currently, the Fed’s interest rate stands in the range of 3.5%-3.75% following three rate cuts last year. Markets now await signals on the next monetary policy direction, particularly amid inflation uncertainties and global economic conditions.

The majority of analysts anticipate the Federal Reserve will maintain its interest rate in the 3.50%-3.75% range at the March FOMC meeting. Projections on FedWatch show 99.2% wagering that rates will be held.

Investors must also monitor developments in the Middle Eastern conflict. Israeli military spokesman Effie Defrin stated that Israeli military still possesses “thousands” of targets to strike in Iran, hours after attacks expanded to include Iran’s western and central regions.

Iranian Foreign Minister Abbas Araghchi stated that Tehran had not requested the United States to agree to a ceasefire. In an interview with CBS News, the BBC’s media partner in the US, Araghchi also said Iran sees no reason to engage in talks with America.

US President Donald Trump threatened over the weekend additional strikes against Kharg Island, Iran’s principal oil export hub. He also stated he was not yet prepared to reach an agreement to end the war, which has closed the Strait of Hormuz, a vital global energy trade route, and shaken global energy markets.

The Trump administration plans to announce, at the earliest this week, that numerous countries have agreed to form a coalition to escort vessels through the Strait of Hormuz. However, they remain discussing whether the operation will commence before or after the conflict ends, according to Wall Street Journal reporting citing unnamed US officials. The White House has not provided official comment.

Trump, who stated on Friday that the US Navy would shortly begin escorting oil tankers, claimed that Iran wanted to negotiate. However, this claim was refuted by Iranian Foreign Minister Abbas Araghchi on Sunday.